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Record Profits, Record Unemployment

Thu. December 09, 2010

The U.S. Department of Commerce reports U.S. companies hauled in a record $1.66 trillion last quarter. Meanwhile, a report conducted by the world’s first consulting firm for dislocated workers shows the highest level of job cuts since March.

Despite the sluggish economy, the Commerce report is the highest figure recorded since the government began keeping track of corporate profits more than 60 years ago. Economists attribute the record growth to profits from emerging and rapidly growing overseas markets, like China and India, and companies "doing more with less."

But while corporations are bringing in more money than ever, they are still unwilling to share that growth with American workers. Hiring is being conducted at a much slower pace, says a report by outplacement firm Challenger, Gray & Christmas, Inc. The report shows the pace of downsizing has surged to its highest level in eight months. Employers announced plans to reduce payrolls by 48,711 jobs during the month of November – 28% higher than the 37,986 planned layoffs reported in October.